CFTC fines three companies over unfair trading practices



The Competition and Fair Trading Commission (CFTC) in Malawi has ordered three companies to pay fines of K500,000 each for engaging in various unfair trading practices.

According to a CFTC press statement which has been signed by its Acting Executive Director, Apoche Itimu, Joko Electric Company Limited has been penalised for selling a faulty distribution electric transformer to a customer and not fully honouring the cost of fixing it.

The company has since been ordered to pay the complainant K1,975,040.80 being the balance for repairing the faulty transformer and MK500,000 to the Commission being a fine for engaging in excluding liability for defective goods.

Malawi Dairy Industries (MDI) has also been fined K500,000 for allegedly supplying products likely to cause injury or physical harm to consumers; insufficient labelling of products and non-disclosure of material information.

It is reported that during inspections, the Commission found that packaging and labelling material of a 250ml of MDI’s Homogenised and Pasteurised Liquid Milk, did not display manufacture dates, products valid shelf life.

Another inspection revealed that Rana Superette in Ntcheu was indulging in misleading conduct and supply of products likely to cause injury or physical harm to consumers as the shop was stocking packets of MDI’s Homogenised and Pasteurised Liquid Milk which had no manufacture dates and expiry dates and it has also been fined K500,000.

The Commission has, however, cleared United General Insurance (UGI) which was being accused of engaging in anticompetitive business practice through their brokers who were allegedly restricting competition in the provision of Toyota Plus Insurance Policy to purchased Toyota Malawi motor vehicles.

Meanwhile, the commission through the statement says it has adjudicated about 57 cases, of which 51 cases are about unfair trading practices, while six cases, are about uncompetitive business practices.

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